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The slaughter just seems to continue with uranium producers. Cameco is now at 19 and sporting a pedestrian PE of 17 with a dividend yield around 2%. It is almost looking like a value play now despite an earlier run at 45.

It is now actually close to its 2009 low.

I know some are really down on Uranium but Japan has only talked about moving away from Uranium - I don't know if they'll be able to do it. Germany has long-range plans about not pursuing more nuclear power plants but again it remains to be seen what they'll do. Meanwhile we know that India and China are continuing to build more plants. We also know that current uranium production is insufficient for existing uranium use with the gap filled from decommissioned nuclear arms warheads. However, those warheads are now also running out.

I think this is a good opportunity for a long-term contrarian bet but I would wait for a more solid bottom to form as these guys just continue to sink. Cameco is the strongest player in the field and they have the hedging programs in place to ride out any weakness in uranium spot prices. They also seem to be intent on trying to expand with the hostile takeover of Hathor. I also wonder if they make a play on Denison Mines with their stocks down about 75% from their yearly high and trading at 1.19 now.

I guess I'm ready to jump in once the knife stops falling. Are any of you guys about ready to wade in?
 

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I've already got wet at least to the waist with full submersion pending :)

India & China are forging ahead and Japan and Germany may not be able to quickly decommission their plants.
 

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Discussion Starter · #3 ·
I've already got wet at least to the waist with full submersion pending :)

India & China are forging ahead and Japan and Germany may not be able to quickly decommission their plants.
I'm thinking about plunging in on Monday and then may continue to average down as I'm pretty happy with where the price is right now. Then I'll just sit back and wait. Maybe I'll sell some puts for CCJ (Cameco on the NYSE).
 

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no one is in this stock anymore?

As obvious it can be, my username is pro nuclear.

Anyways, I see bright future for the nuclear industry for decades to come.

Care to disagree?
 

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I still own Cameco. I have an ACB in the low $20 range. Perhaps I should have waited but I am content to pick up an accidental dividend nearing 2% while I wait. (Just as good as keeping it in a HIS).

I can see this sector hurting for some time but I see it as a "there's a little problem we didn't anticipate" turnaround value play as Peter Lynch would put it. It will rebound it's just a question of when. Nuclear power is here to stay. Even Germany's plan to decommission is so far into the future it's irrelevant. Besides Germany has bigger things to worry about atm.

I recently saw a commercial on BNN by UAX. I found it amusing that they were trying to find shareholders by using a takeover target campaign. There were many comparisons made to Hathor in the ad. Perhaps they feel it is an opportune time now that Cameco has withdrawn from the Hathor acquisition. Drilling results are supposed to be released from UAX in a couple of weeks if I recall.
 

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Did China and Indian finished their safety reviews amid Japan accident yet?
I beileve they did, but the industry is not reacting.

We have the science backing us. Anti nuclear groups have oil and gas companies backing them up. I wonder who will win lol. If you look at the funding source of anti nuclear groups, you will notice that they can be traced directly back to oil and gas companies.
Nuclear energy competes directly with fossil fuels, not with renewables. Renewables at their current stage is simply too expensive to compete against nuclear and fossil fuels.

Aside from Greenpace (they are against everything that promotes economic growth) also against nuclear power; however they are busy with drilling, fracking, building, everything lol.
Who provides funding for Greenpace anyways lol since they are against everything.
 

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I have doubled down, now holding several thousand shares with an average price just under $20.
I am content to hold a world class company in the energy field and which pays a dividend.
 

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Well I don't have several thousand shares ( i wish) but I just bought another 30 shares for my daughters RESP @ 19.19 last week. Brings my total up to 120 shares with an average position of 22.39.
 

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I played the contrarian bet shortly after the Fukushima disaster so I'm in around $26. I haven't averaged down yet as I didn't want to be overweight in this industry. I'm a little more balanced now and if I free up some cash I'll probably buy a bunch more.

As mentioned above, China has a bunch of new reactors currently being built, and there's currently not enough uranium being produced to supply all the new reactors that are planned to come online in the near future.
 

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I own around 2000 shares of cco. I average down and down and down another down.
Horroble nights i have had.
But deep down, i know nuclear will prevail.

The fundmental got crippled for maybe 5%. But still good growth prospect.
 

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IMO, instead of continuing to average down & locking new capital in this constant volatility, you should have traded, saved the profits and then bought at every dip, at least that way you would have been buying with profit.

I have a good ACB on my long-term position and continue to add with profits. ;)

What's not to like in CCO?

Btw, were you copying my portfolio? Because I too have many shares of MFC :p :rolleyes: [but I trade them as well].
 

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IMO, instead of continuing to average down & locking new capital in this constant volatility, you should have traded, saved the profits and then bought at every dip, at least that way you would have been buying with profit.

I have a good ACB on my long-term position and continue to add with profits. ;)

What's not to like in CCO?

Btw, were you copying my portfolio? Because I too have many shares of MFC :p :rolleyes: [but I trade them as well].
seriously? I am new here lol. I wouldn't known what you put in your portfolio.
I am just buying what is cheap and the price dropped dramatically for no good reasons. CCO and MFC are the good ones.
 

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i'm thinking this might be somewhat nice in cameco & will be getting nicer if stock falls. Buy ccj jan 2014 10 calls, bid 9.60 ask 10.40. One would aim to purchase for 10.15, maybe 10.20.

then sell ccj jun 23, bid 1.10 ask 1.20. One might aim at 1.15 but if one had been lucky on the buy one would be content to collect 1.10.

cost of this lovely spread might be 9.05. Its upside is 13.00 before 2014. That's good enough.

if you bought a stock that appreciated 40% in 2 years 2 months you'd be happy too, right.

ps that june 23 strike price is a bit on the high side because i've already taken all the capital gains for 2011 that i can tolerate, so i'm trying to keep the gains down.

long before june those jun 23s will get rolled over, maybe to something lower & more aggressive, with a higher premium to be collected. Bref this strategy is like a covered write on steroids. Except that the long leg is not the stock, it's a 2014 LEAPs call option. It all costs roughly half as much as purchasing cameco stock.

don't even think of mentioning the missing dividend. It's a 2% dividend yield compared to 10% capital gains yield. Of course, the gains yield has more risk ... so what were you expecting, a freebie christmas present ?
 

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Humble Pie is a pr option trader I see.

I thought about buying a long term Call option at these levels. Since I will be going long, I want to get in earlier because I need time to save up money to possess the actual shares. However, after running some numbers, I believe that using margin and line of credit prove to be better due to the following:
1) won't miss out on that dividend
2) the interest rate equivalent of that call option is around 10%+ even if i used cash

margin interest rate is only 4.25%, and line of credit is only 4.5%. I ruled out using options all together.

I have been to find a way to use options to fit my strategy of buy and hold, or anything that is in my favor; however, the option market just failed miserably for my taste.
 
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